Travel, Tourism & Hospitality

Saudia marketing transformation drives double-digit revenue growth in H1 2026

RIYADH
Saudia marketing transformation drives double-digit revenue growth in H1 2026

Saudia has reported double-digit global revenue growth in the first half of 2026, alongside improved return on ad spend and a double-digit reduction in cost of sale compared with the same period last year, following a marketing transformation led by Arved von zur Muehlen, Executive Vice President and Chief Commercial Officer.

The transformation was developed and operated by Incubeta MENA, connecting data, media, creative and technology within a single growth system focused on commercial outcomes rather than marketing activity.

The approach was introduced as the airline navigated shifting traveller demand, pricing, booking behaviour and load factors amid seasonal peaks and regional disruption.

Under the model, Saudia defines its commercial priorities and what constitutes a valuable booking, while Incubeta MENA operates the system linking these objectives across marketing functions.

Live audience and behavioural signals are integrated with search, dynamic creative and automated workflows, enabling the airline to respond more quickly as traveller intent changes.

von zur Muehlen said: “The conversation around AI can very quickly become about the technology itself, but from a commercial perspective, the more important question is what you are asking that technology to achieve. For us, the starting point was defining what a valuable outcome looks like for the business and then building the system around it. That changes the role of marketing from delivering activity to responding intelligently to demand and creating measurable commercial value.”

The system currently accounts for 50 booking behaviours and more than 200 micro-personas, supported by more than 2,000 creative variations within a single dynamic creative library.

Generative AI is used to help develop relevant messaging for different audiences and travel moments, with the aim of improving relevance, speed and scalability rather than simply increasing creative output.

For Katerina Bazalova, Managing Director, Incubeta MENA, the transformation reflects a wider shift towards greater accountability for commercial results and more effective use of marketing investment.

Bazalova said: “There is a lot of focus on what AI allows marketers to produce, but volume alone is not the opportunity. Our clients do not buy activity from us. They buy an outcome: revenue, marketing maturity and growth they can measure. The real value comes from connecting technology, data, media and creative around an outcome the business actually cares about.And it has to deliver the long and the short of it: capturing demand today while building the brand that wins market share tomorrow. In this case, we have been able to build around Saudia’s commercial priorities and measure the impact through revenue, return on ad spend and cost of sale. That level of accountability is where we believe the industry needs to go.”

The companies said the longer-term opportunity will involve adapting the system as artificial intelligence becomes increasingly influential in how consumers discover and book travel.

AI agents are expected to play a greater role in travel decision-making, increasing the importance of data, commercial priorities and systems capable of responding rapidly to changing customer intent.

Saudia’s next phase will focus on agentic technology, with plans for performance marketing agents covering signals, spending, creative and offers, coordinated through a central intelligence layer.

 The airline is also developing greater ownership of its models and logic.

For Incubeta MENA, the development signals a broader evolution in the agency model, from delivering individual channels and outputs towards building, operating and taking accountability for integrated systems designed to support measurable business growth. -TradeArabia News Service